Google gobbles YouTube; On heels of music deals, Netco pays $1.6 bil for vid site

Google gobbles YouTube; On heels of music deals, Netco pays $1.6 bil for vid site 1Marking the transformation of Internet video from curiosity to serious business in barely a year, Google on Monday agreed to acquire YouTube for $1.65 billion in stock.

Deal immediately makes Google the biggest player in this burgeoning market, and turns the Netco into the most powerful partner for media companies looking to distribute their content online.

That was demonstrated Monday, as four major content companies signed deals with the two Netcos:

CBS pacted with YouTube to provide daily short-form content from its entertainment, news and sports networks. Net will sell advertising around its videos and split the revenue with YouTube. In addition, CBS will use new technology, expected to launch later this year, from the Netco to identify user-uploaded content that violates its copyrights and will then decide whether to ask YouTube to take it down, or to keep it up and split revenue from related ads.

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